People you usually of the mindset to do
everything possible to pay all your bills, liquidating everything
possible to try to avoid filing bankruptcy, and then, as a last
resort, file bankruptcy. Bankruptcy should be a last resort,
referring to a financial plan, and doing things according to the
plan, not just doing things to do things. Last resort does not
mean do everything you can think of, regardless of what it is.
You have heard the phrase you should do
things Smart, not just Busy.
The thing about the bankruptcy code, it
does not necessarily make logical sense. Often one can do something
whereby they think they are helping themselves, just to find out
later they were actually hurting themselves, both financially and
emotionally. And all because they did not take advantage of a free
bankruptcy consultation.
An example
The following is a general scenario
that is not uncommon given the following general facts:
- Double wide mobile home (12 months of payments left);
- 5 acres of land in a rural part of county in Florida (paid for);
- $30,000 in a retirement fund;
- a vehicle - owed $25,000, worth $17,000; and
- significant debt on credit cards and medical bills.
One other small fact, a recent
downgrade in jobs; lower income.
Does this sound remotely familiar?
After liquidating retirement funds,
refinanced the home to include the land for some money to pay bills.
Later ran low on money, vehicle repossessed, and the real property
sold at a Short Sale.
A bankruptcy consultation would have
revealed the retirement funds could have been saved, and the home
probably could have been saved. The car, depending on income and
equity in the vehicle, could have probably been saved. Credit card
and medical debts, most probably discharged in bankruptcy.
This is an example of waiting too long
to receive a consultation so one can plan their affairs around the
filing of a bankruptcy.
Please keep in mind, no 2 cases are
the same. Every case is different, and you should seek the advise of
a local bankruptcy attorney in your area.
